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Article
Publication date: 13 August 2018

Javed Hussain, Samuel Salia and Amin Karim

The purpose of this paper is to examine the relationship between financial literacy, access to finance and growth among small- and medium-sized enterprises (SMEs) within…

Abstract

Purpose

The purpose of this paper is to examine the relationship between financial literacy, access to finance and growth among small- and medium-sized enterprises (SMEs) within the Midlands region of the UK. It assesses whether financial literacy assists SMEs to overcome information asymmetry, mitigates the need for collateral, optimizes capital structure and improves access to finance.

Design/methodology/approach

To gain a deeper insight into the complex relationship between financial literacy, access to finance and growth, a qualitative research is carried out among SMEs that have operated for over five years or longer. Using the purposive sampling technique, 37 firms were selected based on size, location and characteristics, mainly from the city of Birmingham and the joining conurbations. Open-ended and a combination of dichotomous questions were used for the survey. Interviews were recorded, transcribed and thematically analyzed.

Findings

Financial literacy is an interconnecting resource that mitigates information asymmetry and collateral deficit when evaluating loan applications, therefore financial literacy should be part of school curriculum. The analysis suggests enhanced financial literacy, reduces monitoring cost and serves to optimize firms’ capital structure that positively impacts on SMEs growth. Financial management knowledge is recognized as the core resource that aids an effective decision making by owners of SMEs.

Research limitations/implications

The limitation of this research is the small sample that limits its generalization. Its findings could be enhanced by a larger sample and by conducting comparative studies in other regions or economies. SMEs growth is seen as a strategic policy to stimulate enterprise but the finance gap tends to constrain that objective. The UK Government’s effort to improve access to finance and to mitigate excessive collateral demands by lenders has proved elusive. This empirical research provides evidence that financial literacy enhances access to finance and, in turn, promotes growth potentials.

Practical implications

The results of this study advocate the provision of financial literacy at schools and target support for SMEs to acquire financial management skills in order to mitigate information asymmetry between lenders and borrowers.

Social implications

Findings suggest that financial literacy mediates access to finance, enables enterprises to use optimal financial structure to mitigate business failure, creates employment and reduces public sector support for social benefits.

Originality/value

This study is novel in that it examines financial literacy and its implications for access to finance and firm growth in the UK. The study is an effort to highlight the role of financial information in mitigating barriers to finance for SMEs.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 6
Type: Research Article
ISSN: 1462-6004

Keywords

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Article
Publication date: 23 February 2021

Navjot Sandhu and Javed Hussain

This paper investigates the mediating role of access to finance and entrepreneurial education for small and marginal farmers (SMFs) in the Indian northern state of Punjab…

Abstract

Purpose

This paper investigates the mediating role of access to finance and entrepreneurial education for small and marginal farmers (SMFs) in the Indian northern state of Punjab. Furthermore, it examines the inter-mediatory role of entrepreneurs and the access to finance in the promotion of innovation, development and consequently poverty alleviation.

Design/methodology/approach

To gain a deeper insight, we used a purposive sampling technique, involving in-depth, face-to-face interviews based on a semi-structured questionnaire amongst 185 farmers from the state of the Punjab in India. The combination of open ended and dichotomous questions amenable to the Likert scale, captured responses and the transcribed questionnaires were thematically analysed.

Findings

Using the analysis of the quantitative and qualitative responses, we explain the cause and consequences of the finance gap and the impact of poverty on household income and the debt levels of SMFs. The findings suggest that the expanding pool of SMFs is due to land ownership fragmentation that disenfranchises SMFs from accessing adequate finance thus limiting their ability to adapt to technological innovations, and therefore limiting their productivity and growth. This essentially limits their ability to transform their economic and social wellbeing. The findings from the data analysis suggest a lack of access to finance negatively impacts on SMFs' ability to use innovative practices, technologies and productivity. This adversely affects income level, access to education and social goods to propel them out of poverty. The findings advocate that government policy should focus on land reforms, which provide adequate access to finance to enable the adaption of technology and an access to markets to empower marginal farmers.

Research limitations/implications

Land fragmentation resulting with population growth in emerging economies continuously expands SMFs. To improve efficiency, productivity and entrepreneurial traits amongst SMFs, it is a pre-requisite to have an agile economy. However, in emerging economies such as India, the responses of 185 farmers suggest, a bespoke policy to promote the interest of SMFs through enabling them access to finance, technologies, training and education, continues to prove elusive. This novel empirical research provides evidence that demands that policymakers, commercial institutions and donors need to respond to the needs of SMFs to ensure food security and an optimal utilisation of farmland. The limitation of this research is that the sample is from one country, which limits its generalisation. The findings of this study could be enhanced by conducting comparative studies in other regions or economies.

Originality/value

This empirical study examined the barriers to enterprise for SMFs in the Indian Punjab; it examined the causes and consequences and the implications for food security for India. The findings of this study highlight the importance of developing the entrepreneurial capabilities of SMFs through effective education, training and above all through an adequate access to finance to enable them to adapt their technology. Furthermore, the findings make a case as to why SMFs are an integral part of the food chain and why it is necessary to enhance their efficiency, productivity and their access to finance.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

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Article
Publication date: 13 November 2017

Samuel Salia, Javed Hussain, Ishmael Tingbani and Oluwaseun Kolade

Against the background of growing concerns that development interventions can sometimes be a zero sum game, the purpose of this paper is to examine the unintended…

Abstract

Purpose

Against the background of growing concerns that development interventions can sometimes be a zero sum game, the purpose of this paper is to examine the unintended consequences of microfinance for women empowerment in Ghana.

Design/methodology/approach

The study employs a participatory mixed-method approach including household questionnaire surveys, focus group discussions and key informant interviews to investigate the dynamics of microfinance effects on women in communities of different vulnerability status in Ghana.

Findings

The results of hierarchical regression, triadic closure and thematic analyses demonstrate that the economic benefits of microfinance for women is also directly associated with conflicts amongst spouses, girl child labour, polygyny and the neglect of perceived female domestic responsibilities due to women’s devotion to their enterprises.

Originality/value

In the light of limited empirical evidence on potentially negative impacts of women empowerment interventions in Africa, this paper fills a critical gap in knowledge that will enable NGOs, policy makers and other stakeholders to design and implement more effective interventions that mitigate undesirable consequences.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 24 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

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Article
Publication date: 21 November 2008

Javed Hussain, Harry Matlay and Jonathan M. Scott

The purpose of this paper is to set out to evaluate the financial education needs of ethnic minority SMEs in the West Midlands region of the United Kingdom.

Abstract

Purpose

The purpose of this paper is to set out to evaluate the financial education needs of ethnic minority SMEs in the West Midlands region of the United Kingdom.

Design/methodology/approach

A postal survey was used to investigate the financial needs of owner/managers in 64 ethnic minority SMEs and a control sample of 23 non‐ethnic SMEs.

Findings

The results show that owner/managers of micro‐businesses have lower educational achievements as well as higher financial education needs than their counterparts in small and medium‐sized firms. In contrast, owner/managers in small and medium‐sized businesses have relatively higher educational achievements and a better appreciation of the role of financial education. Similar trends were observed in non‐ethnic SMEs in the control sample.

Originality/value

This article makes an empirically rigorous contribution to a relatively under researched aspect of SME research. The authors recommend that government agencies collaborate with leaders of ethnic minority communities to raise awareness of the benefits of education in general and financial education in particular.

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Article
Publication date: 23 November 2010

Javed G. Hussain, Jonathan M. Scott and Harry Matlay

The purpose of this paper is to explore the impact that entrepreneurship education can have on succession in ethnic minority family firms that operate in the highly…

Abstract

Purpose

The purpose of this paper is to explore the impact that entrepreneurship education can have on succession in ethnic minority family firms that operate in the highly competitive UK economy.

Design/methodology/approach

The paper employs a complex conceptual model of ethnic minority graduates' economic activities and outlines the possible influence that entrepreneurship education can have on succession in their family firms. An illustrative case study is presented of an ethnic minority graduate who returned to work in the family firm.

Findings

It emerges that entrepreneurship education provision in UK HEIs is insufficiently customised to, and focused on, the specific entrepreneurial needs of graduates. Educators should take into account the complex socio‐economic and cultural differences between native and ethnic minority learning environments. Effective entrepreneurship education emerges as crucial to the survival and growth of ethnic minority family businesses in the UK and could contribute positively to ownership transfer in this type of firm.

Research limitations/implications

The proposed theoretical model has not been empirically tested and it is only indicative of the impact that entrepreneurship education could have on succession in small ethnic minority family businesses in the UK.

Originality/value

Although prior research has explored various aspects of ownership succession, this article focuses specifically on the impact that entrepreneurship education can have on succession in small ethnic minority family firms.

Details

Education + Training, vol. 52 no. 8/9
Type: Research Article
ISSN: 0040-0912

Keywords

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Article
Publication date: 19 May 2021

Lubna Javed Rizvi and Zahid Hussain

This paper aims to review the literature of CG regime in Saudi Arabia, an emerging market for several compelling reasons. Most of the earlier literature on corporate…

Abstract

Purpose

This paper aims to review the literature of CG regime in Saudi Arabia, an emerging market for several compelling reasons. Most of the earlier literature on corporate governance subjects mainly aimed at large emerging economies. To date, there is a lack of studies examining the following: authorities and obligations, subcommittees and the regulatory system in Saudi Arabia. Therefore, this paper is an attempt to bridge this gap by reviewing the current laws, regulation, trends and key reforms in corporate governance framework in the country as the current amended laws focused to offer more competence and precision to the regulatory setting in line with the development of the Saudi Arabian stock market and the influx of foreign reserves.

Design/methodology/approach

The current paper has espoused a content analysis approach in which relevant literature was deliberated and studied.

Findings

The amended CG rules include some developments into corporate governance and substitutes the earlier version of the long overdue regulation of 1965. The new 2017 implemented Code will reinforce the implication of good governance as a condition model for accomplishing good financial management in the country. This study has provided an overview of the evolution and development of corporate governance in Saudi Arabia by highlighting the key reforms.

Research limitations/implications

This study has implications for the policymakers and institutional bodies to review the current developments and progress in the country’s overall corporate governance framework in an attempt to attract more foreign direct investment. Saudi Arabia is among the nations that have a potential for huge foreign investments due to its plan of expanding its economy “Vision 2030.” Therefore, this paper will aid foreign investors in deciding to invest in the country after reviewing the current developments in an attempt to implement vision 2030.

Originality/value

This study contributes to existing literature by examining the current trends in CG, with the discussion on the development of company law in Saudi Arabia which emphasizes on sections that borders on corporate governance.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

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Article
Publication date: 27 November 2007

Javed Hussain and Harry Matlay

This paper seeks to investigate the provision of Vocational Education and Training (VET) in Small Ethnic Minority Businesses (SEMBs) operating in the West Midlands region…

Abstract

Purpose

This paper seeks to investigate the provision of Vocational Education and Training (VET) in Small Ethnic Minority Businesses (SEMBs) operating in the West Midlands region of the UK.

Design/methodology/approach

A qualitative approach is employed, involving in‐depth, face‐to‐face interviews with 66 owner/managers of small ethnic minority businesses located in the West Midlands region of the UK. The research sample included 26 graduate entrepreneurs and 40 non‐graduate respondents.

Findings

Most of the SEMB owner/managers in this study exhibited a positive attitude towards VET. A large proportion of the respondents, however, admitted not to have provided any training during the previous 18 months of trading. Training provision appears to be affected by both “directly” and “indirectly” relevant factors. The majority of the SEMB owner/managers in the research sample do not have specific human resource strategies, audits, plans or related budgets, and training was offered largely on a reactive rather than proactive basis.

Research limitations/implications

Caution is advised in the use and generalisation of results that emerge from qualitative research that involved a small sample of respondents chosen from a restricted area of the UK.

Originality/value

The paper makes an original contribution of exploring the area of vocational education and training in small ethnic minority businesses that is at the forefront of discussion in academic and industry in the UK.

Details

Education + Training, vol. 49 no. 8/9
Type: Research Article
ISSN: 0040-0912

Keywords

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Article
Publication date: 16 November 2012

Navjot Sandhu, Javed Hussain and Harry Matlay

The purpose of this paper is to investigate the entrepreneurship education and training (EET) needs of small family businesses operating in the agricultural sector of the…

Abstract

Purpose

The purpose of this paper is to investigate the entrepreneurship education and training (EET) needs of small family businesses operating in the agricultural sector of the Indian economy.

Design/methodology/approach

Quantitative and qualitative data were collected through a survey of 122 agricultural family firms in the Indian state of Punjab. Responses were analysed using descriptive statistical methods to establish causal relationships between key variables and EET needs in these family firms.

Findings

Results show that owner/managers of small family businesses have low levels of EET and hence higher needs. Lack of sufficient funds and low awareness about the availability of training are the most significant challenges for these family firms in accessing financial education and training. Factors such as level of education and training of the owner/manager were found to be major determinants of family firms’ take up of EET.

Originality/value

This research paper makes an empirically rigorous contribution to a relatively under‐researched aspect of small family businesses operating in India. The results established that EET is a prerequisite for economic growth in the agricultural sector of the Indian economy.

Details

Education + Training, vol. 54 no. 8/9
Type: Research Article
ISSN: 0040-0912

Keywords

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Article
Publication date: 30 September 2008

Javed G. Hussain, Jonathan M. Scott and Paul D. Hannon

The purpose of this paper is to profile the characteristics and entrepreneurial motivations of graduate entrepreneurs from black and minority ethnic (BME) communities.

Abstract

Purpose

The purpose of this paper is to profile the characteristics and entrepreneurial motivations of graduate entrepreneurs from black and minority ethnic (BME) communities.

Design/methodology/approach

To gather the data, the authors interviewed selected individuals from within the BME community (including current students and graduates from various universities, predominantly in the West Midlands, UK), analysed the transcripts and compared the findings with the review of literature.

Findings

Evidence suggests that BME graduate entrepreneurs were diverse in terms of their characteristics: size, gender, ethnicity and when they started the business. Almost all interviewees had worked for someone before they started their business. The two most compelling motivations for start up were “being your own boss”, especially for Indians and Bangladeshis; and making more money (31 per cent), in particular for African Caribbeans. Over half of interviewees started a business in a sector in which they had prior experience, knowledge or skills. Two thirds of interviewees obtained advice from family and friends, while just over a third had completed any kind of training or course.

Research limitations/implications

The sample of BME graduate entrepreneurs in this study was both small and selective. It was not statistically significant, nor did it represent a random selection of the BME graduate entrepreneurs in the UK or the respective population mix. Hence, there is a need for a larger scale study and the inclusion of a white control group.

Originality/value

This study provides an insight into characteristics and entrepreneurial motivations of BME graduate entrepreneurs. Though the results of this study are indicative, there is a compelling case for further research into this relatively unexplored group.

Details

Education + Training, vol. 50 no. 7
Type: Research Article
ISSN: 0040-0912

Keywords

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Article
Publication date: 1 October 2006

Javed Hussain, Cindy Millman and Harry Matlay

The purpose of this research is to outline the preliminary results of an empirical investigation into access to finance and related issues, as experienced by SME…

Abstract

Purpose

The purpose of this research is to outline the preliminary results of an empirical investigation into access to finance and related issues, as experienced by SME owner/managers in the UK and in China.

Design/methodology/approach

The authors employed a telephone survey involving a sample of SME owner/managers operating in the UK and in China. A detailed, semi‐structured questionnaire was administered to a selected sample of 32 matched SMEs. The survey requested quantitative and qualitative information on sources of finance, both preferred and actually used by owner/managers, during three stages in their firm's business cycle: at start up, after two years and over the next five years.

Findings

Evidence suggests that there are similarities as well as differences between SME financing in the UK and in China. In terms of initial (start‐up) funding, a large proportion of respondents relied exclusively on financial support from their immediate family. After two years in business, respondents exhibited a higher reliance on own savings and the financial support of bank and other financial institutions. At the end of five years of uninterrupted economic activity, most of the owner/managers in the UK sample relied for their borrowing needs primarily on financial institutions and to a lesser extent upon their own savings. In contrast, owner/managers in China depended mainly upon financial support from their immediate family and to a lesser extent on financial institutions.

Research limitations/implications

The sample for this research study is both small and selective. It is not meant to represent a random or statistically significant selection of either the UK or Chinese SME sectors.

Originality/value

The financing preferences of owner/managers in the sample have been influenced by their perception of the relative strength and weaknesses of domestic finance infrastructures. The results of this research study is indicative of SME owner/managers' financing needs, attitudes and perception. Future developments and the strengthening of the legal and financial infrastructure in China could significantly reduce the comparative gap between owner/manager preferences in these two countries.

Details

Journal of Small Business and Enterprise Development, vol. 13 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

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